Down-Trend Price Stacking Action

Pound price action has recently exhibited "trend stacking" behavior whereby previous support levels tend to turn into resistance as price moves further down. Therefore, it is wise to look for price level to take advantage of the existing bearish momentum. While a well formed level exists at 1.2950 - 1.2960. The higher placed and better priced zone around 1.3000 has several confluence factors to support it ( trend line and H1 200 MAs). The fact that this pair is currently at a long-term, extreme price point (lower end of the long-term range) means that there is the potential for bargain buyers to push the pound up. Therefore it would be a good idea to book profits on any shorts from these levels quickly.